Post by
Swingzup1 on May 01, 2021 9:37am
Foundation setting year
Overall these are solid looking financials. The gross profit margins being down on yet another record setting revenue year is a bit disheartening to look at, but considering Rich took over as CEO in March 2020, implemented a completely new strategy and expanded into a new province, the small gross profit is nothing unexpected. The key takeaway is that the first 3 quarters were used to transition the company and the fruit of that labour was seen in Q4 by becoming profitable for the first time in company history. All thought at a glance 74k net profit is nothing eye popping, when comparing it to the $651,000 net loss from the year prior, that 74k looks more impressive because it showcases a 725k turn around YOY and at the back end of a transition year let us not forget.
Q1 will be a very important quarter for long term investors as the extra spending and costs can be excused based on business model transition. Now that foundation is set however, we want to see better margins going forward and lowering that 4.8 million in net loss and that begins with a improved Q1 and seeing the fruit from the labour of 2020s transition.
I do expect more expansion and spending in 2021 as the company as mentioned expanding operation in current provinces as well as entering the U.S market but I'll watching for that expansion to happen not as far behind the 8 ball as the company has turned a profit in Q4 and should continue to ride that wave cutting debt and expanding at a more controlled and affordable rate which will in turn bring value to investors and company executives.
Comment by
MikeHunt0 on May 01, 2021 11:14am
2020 results are as expected, no surprises. The net loss was mostly unavoidable expenses and one time charges. 2020 ended 4 months ago and I agree that Q4 2020 is a good set up going forward. I'm looking forward to Q1 2021 results and the future of this company.